Layer 2 blockchain is a technology or protocol built on top of an existing blockchain network that leverages the security and other features of the main chain while its own independent framework expands the functionality of the system.
Their goal is to increase the throughput and scalability of the network by processing some or all transactions outside the main chain. This means that although all transactions will eventually be verified and stored on the main chain, before that, they will be processed in the second layer network, which greatly improves the performance of the blockchain network.
Advantages of Layer 2 Blockchain
Layer 2 blockchain advantages: Layer 2 blockchain solutions are greatly improving the scalability of blockchain networks, making them more competitive in terms of throughput, cost, and ease of use. Although they face some challenges in technology and implementation, as these issues are resolved, we can expect Layer 2 blockchain solutions to play an important role in the future blockchain field.
Best Layer 2 Project
There are countless Layer 2 blockchain options available today for processing transactions, here are some of the best Layer 2 projects worth checking out.
Lightning Network:
Lightning Network is a Layer 2 solution for Bitcoin that enables instant payments and higher transaction throughput by creating peer-to-peer payment channels. It aims to enable faster and cheaper transactions through off-chain payment channels, thereby solving the scalability challenges of the Bitcoin main blockchain.
Mantle Network
Mantle Network stands out because it is managed by a decentralized autonomous organization (DAO). This Ethereum community-led layer 2 system has a modular structure. People can operate on different levels depending on the level of security and the type of transaction required. It has many tools for deploying smart contracts, making it popular with real users.
Eclipse
Unlike many other layer 2 blockchain projects, Eclipse is not attached to a single chain. Instead, it is a customizable rollup architecture that can be used on multiple blockchain networks. Developers can use Eclipse to deploy layer 2 rollup services on systems such as Celestia, NEAR, and Solana. People can create rollups for a variety of projects and find off-chain scalability solutions that fit their unique needs.
zkRollups:
zkRollups is a technology that improves scalability by performing a lot of computation outside the main chain and only saving compact proofs in the main chain. Efficient batch processing is achieved by bundling multiple transactions into a single transaction and using zero-knowledge proofs to verify the correctness of these transactions.
Optimism
This layer 2 blockchain uses Optimism, treating every transaction as valid. Transactions are only rolled back if they get fraud proof that identifies an invalid transaction, so the network doesn't have to spend a lot of time manually confirming blocks. This consensus mechanism requires people to provide stake for each new block, so it maintains security even without a lot of verification or time spent looking for fraud proof.
Decision
Arbitrum has an impressive transaction speed of 40,000 transactions per second with very low fees. Its scaling solution uses optimistic rollups to create a simplified and convenient system and is loved by DApp developers who can code on it using the base language used by the Ethereum Virtual Machine (EVM).
Polygon
Polygon is one of the most popular Ethereum layer 2 extension systems. This layer 2 blockchain makes it easy to develop new programs. Polygon is used for many different DApps and payment channel projects, and developers can also use Polygon's software development kit to build their own sidechains.
Lightning Network
Lightning Network Unlike many layer 2 blockchains, the Lightning Network runs on Bitcoin. Layer 2 blockchains provide an easy way for people to experience faster transactions in exchange for crypto micropayments. Although the Lightning Network is fairly simple, it is the backbone of countless Bitcoin transactions. The option to choose different payment channels depending on the desired transaction speed is very useful.
Raiden Network
Raiden Network is also a Layer 2 solution for Ethereum that uses state channel technology to improve the scalability of the network. A network of bidirectional payment channels is established between participants. These payment channels allow tokens to be transferred securely and instantly without having to record every transaction on the Ethereum main chain.
Immutable X
Immutable X aims to enhance Ethereum’s scalability and usability by providing a Layer 2 solution that delivers fast, low-cost transactions while leveraging the security and decentralized nature of the Ethereum network.
How Will the Upcoming Ethereum Cancun Upgrade Benefit Layer 2 Projects?
The Ethereum blockchain is known for its unusually high level of Layer 2 blockchain projects. Ethereum’s new update may provide more opportunities for Layer 2 developers. The Cancun-Deneb upgrade, also known as EIP-4844 (or more informally known as “Dencun”) will introduce a foundation for scalability called Danksharding. Proto-Danksharding, available in the Cancun update, will provide a versatile method of short-term data storage, making it easier to perform rollups. Layer 2 projects can benefit from the Cancun update in many ways.
In summary, Layer 2 is seen by many as the future of blockchain with its ability to provide scalability and affordability. In just a few years, they have gone from an occasional novelty to an essential part of web3 development. Payment channels, DApps, and more are all built on top of Layer 2 blockchain concepts. Not only are more and more smart contract projects running on Layer 2, but more and more Layer 2 systems are being created to assist these projects.
Some Layer 2 projects have also issued their own tokens, which can be used to obtain returns on investment by purchasing and holding these tokens for a long time; with the widespread adoption and development of Layer 2, the value of related tokens will increase accordingly. Therefore, investing in Layer 2 projects is a good option, and the future benefits will be unlimited.
#BTC #ETH #带你看看币安Launchpad #token2049 #layer2
Note: All content represents the author's personal views only, is not investment advice, and should not be construed in any way as tax, accounting, legal, business, financial or regulatory advice. Before making any investment decision, you should seek independent legal and financial advice, including advice on tax consequences.
Agency: Kepler Research
For more information, please follow: KeplerResearch @kepler008
